The crop marketing season commences this month of May 2023 with some development both on the outputs and prices. The food reserve agency, one of the major players in the crop marketing value chain announced that they will focus on replenishing the depleted stock of maize and paddy rise. the agency expects to purchase maize to meet the minimum statutory strategic grain reserve threshold of 500, 000 mt and 1,000 mt of paddy rice. the price for maize has been set for zmk 5.6 per kg high by 55.6%. FRA has indicated that they will not purchase soybeans
The Agency has since advised the millers to buy sufficient stocks of their own from farmers to sustain their milling and more importantly has indicated that there is need to allow normal trade but focus should be on curbing illegal cross border trade. the 2022/23 crop is estimated at 3.2 million metric tones of maize and 760,000 mt of soybeans.
Implications: The increase in the prices of maize from zmk3.2 per kg to zmk 5.6 per kg will have a significant impact on the prices of stock feed as maize accounts for 70% of the volume of maize. On the other hand, the good crop for soybeans will definitely push the price of soya cake down depending on the exchange rate